Key Highlights

  • Waterstone's $0.17 regular quarterly Dividend trades ex-dividend October 8, 2026, with payment on November 2 to shareholders of record.
  • Second-quarter Net Income was $8.5 million, or $0.49 per diluted share, compared with $7.7 million, or $0.43.
  • Net interest Margin was 3.03%, which the company described as its highest level since the quarter ended December 31, 2022.
  • Return on average Assets was 1.52%, compared with 1.39%, and return on average Equity was 9.65%, compared with 9.04%.

Waterstone Financial, Inc. (NASDAQ:WSBF) declared a regular quarterly Cash Dividend of $0.17 per common share, a Yield of 3.42%, payable November 2 to shareholders of record on October 8, 2026. Second-quarter net income was $8.5 million, or $0.49 per diluted share. The net interest margin was 3.03%.

Dividend Program and Shareholder Returns

Waterstone's board declared the regular quarterly cash dividend of $0.17 per common share on September 22, 2026, payable November 2 to shareholders of record on October 8. The shares trade ex-dividend on October 8.

In the second quarter, the company reported $6.5 million of total shareholder returns through share repurchases and dividends. Waterstone repurchased approximately 200,000 shares at $18.40 per share, including federal excise tax. Book Value per share was $19.53 at June 30, 2026, compared with $19.03 at December 31, 2025, and the company reported 17.975 million shares outstanding. Each dividend remains subject to board approval.

About the Company

Waterstone Financial, Inc. operates a community banking segment and a Mortgage banking segment. The company reported total assets of $2.252 billion and total deposits of $1.421 billion at June 30, 2026. Average loans held for Investment were $1.68 billion during the second quarter, up $9.7 million, or 0.6%, from a year earlier. Nonperforming assets were 0.30% of total assets at June 30, 2026.

Second-Quarter and Six-Month Earnings

Waterstone reported second-quarter net income of $8.5 million, or $0.49 per diluted share, compared with $7.7 million, or $0.43, a year earlier. For the first six months of 2026, net income was $14.5 million, or $0.84 per diluted share, compared with $10.8 million, or $0.59.

Annualized return on average assets was 1.52%, compared with 1.39% in the second quarter of 2025, and annualized return on average equity was 9.65%, compared with 9.04%. Net interest margin was 3.03%, which the company described as its highest level since the quarter ended December 31, 2022.

Community Banking and Mortgage Banking Results

Waterstone reported results for its two segments in the second-quarter release, which also included its Capital return and Balance Sheet data. The Community Banking segment reported net interest income of $15.8 million, an increase of $2.2 million, or 16.1%. The Mortgage Banking segment reported pretax income of $1.6 million, down 20.2% from $2.0 million a year earlier. Loan originations were $621.8 million, up 5.6% from a year earlier, and the gross margin on loans sold was 3.60%, compared with 3.84%.

Outlook

Waterstone's $0.17 quarterly dividend is payable November 2 to shareholders of record on October 8, 2026. The 3.03% net interest margin, mortgage banking pretax income relative to the $1.6 million reported for the second quarter, and nonperforming assets at 0.30% of total assets are the relevant considerations.